Nigeria’s Dangote refinery, Africa’s largest, has emerged as a crucial lifeline for fuel and fertiliser across the continent, as disruptions linked to the Iran war exacerbate shortages. During a visit to the sprawling Lagos-based facility, billionaire industrialist Aliko Dangote expressed confidence in the refinery’s ability to meet the growing demand. The refinery is currently operating at full capacity, processing 650,000 barrels of oil per day, and has begun actively supplying fuel not only to Nigeria but also to significant portions of West, Central, and East Africa. The facility has already dispatched around 17 cargoes of gasoline to various African countries.
Amidst the global supply chain disruptions, the Dangote refinery has also seen a surge in exports of urea fertiliser. As nations scramble to secure alternative supplies, the plant’s role has shifted, with more shipments now heading to African markets, a shift that was not previously a priority for the company. The plant has the capacity to produce up to 3 million metric tons of urea annually, with most of the product traditionally destined for the United States and South America.
However, despite the increased output, there is a caveat. Nigeria’s fuel prices continue to soar to record highs, as rising global crude prices negate the benefits of local refining. Dangote suggests that sourcing more crude domestically and pricing it in local currency could ease the pressure on fuel costs. Concurrently, Nigeria’s state oil company is reported to be increasing crude allocations to the refinery, indicating stronger support as the region relies on Dangote’s operation to stabilise supply during these volatile times.
Source: Africanews
